What Importers Should Know about Canada’s New Steel and Aluminum Surtaxes

The Canadian government has rolled out three new surtaxes on certain steel and aluminum imports-some as high as 50%-with overlapping rules that can be easy to miss. For importers, these measures aren't just background policy changes. These measures directly affect landed costs, sourcing decisions, and how quickly goods can clear customs.

If your supply chain includes steel or aluminum-whether raw material, parts, or finished goods-these updates could significantly change your cost structure. Below we break down what's happening, what it means for shippers, and steps you can take now to stay compliant and control costs.

1. Tariff Rate Quota surtax on certain steel goods

Under the Tariff Rate Quota (TRQ) system, imports are subject to a higher rate of duty once a certain quantity or quota of imports is reached:

• Effective June 27, 2025: Certain steel goods imported into Canada are subject to a 50% surtax of the value for duty in accordance with Customs Notice 25-24: Order Imposing a Surtax on the Importation of Certain Steel Goods. The surtax applied to certain steel goods imported from non-free trade agreement (FTA ) partner countries, but not to goods from the United States or Mexico.
• On August 1, 2025: Amendments extended the surtax to additional steel goods and extended it to all countries, including FTA partners.

A quota pool for both FTA and non-FTA partners is established quarterly and any unused quota in a given quarter does not carry over. To avoid the 50% surtax, importers must obtain a shipment-specific import permit from Global Affairs Canada. Once the quota pool has been filled, or when a valid import permit is not available, the 50% surtax will apply.

The orders also impose a maximum share of each product category that may be imported free of surtax from any single country. Once that quantity is reached for a given country, an import permit will not be issued, even if there is remaining quota available in the global pool. These goods may still be imported into Canada, but they will be subject to the 50% surtax.

The Global Affairs Canada Notice to Importers is found here: Notice to importers: Item 82 - Steel goods - Serial No. 1142.

2. China Surtax Order (2024) - Steel and Aluminum

As of October 22, 2024, certain steel and aluminum goods produced in China are subject to a 25% surtax on the value for duty. View the complete list of subject goods.

Between June 27, 2025 and July 31, 2025, goods could be subject to both the 25% China surtax and the 50% TRQ surtax. However, beginning August 1, 2025, any goods subject to the 50% TRQ surtax, the China surtax will not apply.

More information on the administration of this surtax is found here: Customs Notice 24-36: China Surtax Order (2024) - Steel and Aluminum.

3. China melt & pour/smelt & cast surtax

Effective July 31, 2025, certain steel and aluminum goods face a 25% surtax if they contain Chinese-origin material. This includes steel melted and poured in China and aluminum smelted and cast in China, as detailed in the Steel Goods and Aluminum Goods Surtax Order. The complete list of goods that are subject to the surtax is found here: Orders In Council - Search.

Goods eligible to be marked as Made in the United States are exempt. The onus is on the importer to provide evidence (upon request) that the country of melt and pour or smelt and cast is a country other than China.

If goods are already subject to the China Surtax Order (2024) or the 50% TRQ surtax, the melt-and-pour / smelt-and-cast surtax does not apply. In other words, this surtax is not "stacked" on other surtax measures.

More details on the administration of this surtax, including examples of how the surtax is calculated in various scenarios, is found in this Customs Notice: Customs Notice 25-28: Steel Goods and Aluminum Goods Surtax Order.

Additional measures possible

The Canadian government reserves the right to implement additional measures to support the domestic steel and aluminum industries. Staying current is critical, as new actions could shift cost and compliance requirements with little notice.

What shippers can do now

With these surtaxes set to reshape costs, importers can act now to stay ahead. Start by reviewing your product lines and identifying any items that include steel or aluminum-especially those with Chinese-origin melt or pour. For goods subject to the TRQ system, file for shipment-specific permits at the start of each quarter and monitor quota usage closely, since quotas don't carry over.

Documentation is equally critical. Ask suppliers for clear melt-and-pour or smelt-and-cast certificates to avoid being automatically charged the 25 % surtax. At the same time, explore alternative suppliers and shipping schedules to sidestep country-specific caps.

Stay informed

Developments in customs and trade continue to evolve-stay informed to be prepared:

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